Two ETFs Flying High

US Real Estate ETF (IYR) has been surprisingly performing well for past year despite the negative trends in the real estate market.  It is currently at its new recovery highs as it can been seen from
the one year chart below.  It has been setting higher highs and higher lows for more than six months now and continues to be healthy.  

As seen from the positive trends in the chart, the next stop looks to be around $45 where it meets the upward support line.  Keep in mind that the current trend seems to be losing some steam if you consider that fact that it is forming a triangle from the upward sloped resistance and support lines and the fact that the volume has been on the downward trend going back 10 months.  It’s usually is not a good sign when there is a declining volume while the price of a stock increases.  Considering the distance between the highs and lows are converging with the declining volume gives us a clue on the next potential move of IYR.

Biotech ETF (XBI) is another group that has been performing well due to many biotech stocks have been surging recently. From the nine month chart, we can see that XBI has now reached its major resistance level and we should expect XBI to retrace back down to its support level in the 2-3 weeks or so.  Currently, its support is around $57.50 level, a good place to possibly go long in XBI if you still believe there is more profit potential left in the market.

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